CORRECTED - UPDATE 1-MGM Mirage first-quarter profit falls

(Changes day of the week in first paragraph to Monday, and fixes closing stock price to up nearly 20.5 percent at $9.47 on the NYSE)

* First-quarter net income $0.38 per share

* Revenue drops 20 percent to $1.5 billion

LOS ANGELES, May 4 (Reuters) - MGM Mirage (MGM.N) said on Monday it swung to a loss in the first quarter as gamblers stayed home and businesses canceled meetings in Las Vegas.

Net revenue fell 20 percent to $1.5 billion.

Including a 44-cent-per-share gain on the sale of the Treasure Island resort, the No. 2 casino operator posted net income of $105.2 million, or 38 cents per share, compared with net income of $118.3 million, or 40 cents per share, in the year-earlier period.

Wall Street analysts, on average, had expected an adjusted loss of 5 cents a share on revenue of $1.58 billion.

MGM and Dubai World, joint venture partners in the CityCenter project now under construction on the Las Vegas Strip, settled a legal dispute last week over the $8.5 billion development and said they had secured financing, clearing the way for it to open by the year-end.

MGM, burdened by some $13.5 billion in debt, also gained a waiver from lenders giving it until June 30 to bring debt levels into line with financial covenants.